TO ACQUIRE LEADING HEMP CBD BRAND "HEMPMED"
MYM Nutraceuticals Inc. (MYM.C) has entered into an exclusive agreement to acquire 100 per cent of the brand HempMed, a Toronto-based developer and marketer of hemp cannabidiol (CBD) extract and oil-infused nutraceutical products. The transaction is valued at over $1,000,000, all in stock. The fast growing HempMed brand is expected to do sales in excess of $1,400,000 in the next 12 months. MYM has plans to build a new high capacity production facility for HempMed that will increase its sales capacity to handle more than $10,000,000 per year. Further, MYM will open new markets and build an effective online retail strategy for the already popular HempMed brand.
The CBD nutraceutical market is growing rapidly worldwide due to an explosion of consumer interest and impressive medical studies on the benefits of high quality hemp CBD products.
A recent Forbes magazine article estimated that the CBD market will grow to a $2.1 billion market in consumer sales by 2020 with $450 million of those sales coming from hemp-based sources. That's a 700% increase from 2016.
"This is an incredible opportunity for MYM," commented Jonathon Fiteni, CEO of MYM, "The HempMed team have many years of experience in research, development and over 25 years experience in sales and marketing in Canada, the USA and Worldwide markets. Their experience is invaluable to MYM and its future growth plans and desire to be the leading CBD brand worldwide."
The current HempMed product line currently consists of over 20 Hemp products and plan to launch several more groundbreaking products over the next 12 months as a direct result of the transaction. MYM plans on expanding HempMed's existing distribution network which consists of over 60 retail outlets and online sales portals across Canada, the USA, and Internationally. Furthermore, MYM plans to build a brand-new, robust eCommerce website to drive online sales. The current Product line includes signature tinctures, concentrates and oils, edibles, vape products and a line of fast growing pet CBD products which will join the multi-billion-dollar pet market.
HempMed had been approached several times in the past year by others seeking an acquisition deal but commented, "We believe this transaction with MYM fits our vision, will accelerate our future growth plans and enable us to better deliver the highest-quality CBD products to consumers, retailers and wholesale distributors across the country and internationally. MYM holds the tools and infrastructure we have been looking for which is why we accepted a stock only transaction as we believe in MYM's group, their plans and strong commitments to the entire industry". CBD Hemp oil and Hemp based nutraceuticals have been some of the strongest components of the industry with a very bright future. HempMed has developed proprietary technology allowing their CBD products to be not only very effective but of the highest quality and consistency.
Pursuant to the agreement, MYM will issue 2.5 million common shares to the principal of HempMed upon closing. A further amount of 1.5 million shares will be issued to HempMed upon reaching monthly and annual sales targets. MYM will also issue 800,000 shares as a finder's fee to the person who brought the deal to the attention of MYM's board.
The completion of the transaction is subject to the approval of the Canadian Securities Exchange.
MYM is continuing to negotiate acquisitions of complimentary businesses and assets in the technology, Nutraceuticals and CBD nutraceutical sector and is currently in talks with other innovative companies.